Use the Cost explorerform to trace the origin of cost prices through a tree structure view of issues and receipts.

Note
You must execute an inventory closing before you can use the tree structure, because the tree structure uses the inventory settlements that are coming from inventory closings to display cost price dependencies.

To open the Cost explorerform, select Inventory management> Items> Transactions> Inventory> Cost explorer.

You can expand the nodes of the tree structure to see how cost prices are calculated. The cost price of a node is the sum of the cost prices of the underlying nodes.

Examples of expanded views of node:

• Expand a sales order line to view the settled receipts.

• Expand a production order to view all the transactions that are included in the cost price of the production order. This could be bill of material (BOM) items, a route consumption, or adjustments.

• Expand a transfer receipt to view the transfer issues.

After inventory close has completed, you can view the transactions that were settled to each other as a result of that particular inventory close process.

For example, you have the following purchase orders:

• Purchase order number PO123 was entered for a quantity of 1 at a cost of USD10.00.

• Purchase order number PO456 was entered for a quantity of 1 at a cost of USD15.00.

When the sales order number SO987 was posted, the cost amount of the sales order was USD12.50. This is running average for this item at the time the issue transaction was posted.

Assume the FIFO inventory model was assigned to this item. When inventory close is run, sales order SO987 will be settled to purchase order PO123.

1. In the Closing and adjustmentform, click the Settlementsbutton to open the Settlements for voucherform.

2. Select a particular transaction on the Overviewtab.

3. Click the Transactionbutton to open the Settlements in the transactionform, where you can view the settled transaction and identify which issue was settled to which receipt.